commander, navy installations command financial management process improvements
DESCRIPTION
UNCLASSIFIED. Commander, Navy Installations Command Financial Management Process Improvements. Presentation to: American Society of Military Comptrollers - Washington Chapter Mr. Ric Voigt, CNIC Comptroller August 17, 2011. UNCLASSIFIED. Purpose. - PowerPoint PPT PresentationTRANSCRIPT
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UNCLASSIFIED
UNCLASSIFIED
Commander, Navy Installations Command Commander, Navy Installations Command Financial Management Process Financial Management Process
ImprovementsImprovements
Presentation to:American Society of Military Comptrollers - Washington Chapter
Mr. Ric Voigt, CNIC ComptrollerAugust 17, 2011
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PurposePurpose
Provide an overview of the depth/breadth of Commander, Navy Installations Command (CNIC)
Present CNIC N8’s approach to process improvement and development of standardized, repeatable and auditable financial management processes
Demonstrate ProcessQuik, our online process document repository
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Commander’s GuidanceCommander’s Guidance
Mission:
Deliver effective and efficient readiness from the shore
Vision:
Be the sole provider of shore capability, to sustain the Fleet, enable the Fighter, and support the Family
Guiding Principles
Collaborate through teamworkPractice transparency Deliver best value to our customersBe accountable Develop our peopleEmbrace changeImprove continuallyFoster innovation
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Navy Shore Domain TodayNavy Shore Domain Today
JOINT REGIONJOINT REGIONMARIANASMARIANAS
SWA MERGED SWA MERGED WITH CNRE WITH CNRE DEC 2008 TO DEC 2008 TO FORMFORMEURAFSWAEURAFSWA
63.3K pers.: military 24.1K, civilians 34.6K, KTRs 4.6K
13 Flags / 7 SES Direct Reports
$135B PRV (Structures, Utilities)31.6K Bldgs, 24.7K Structures, 13.1K Utilities
$12B resources (appropriations, NAF) - FY10 @ 9/30/10
POPULATION SERVED328K Active Duty65K Active Reserves (SELRES)425K Family Members575K Navy Retirees
11 Regions…72 Bases…1.9 Million Acres125 Runways… 358 Piers/Wharves…$135B Plant Replacement Value
$12B Resources: Fortune 200 in Size
11 Regions…72 Bases…1.9 Million Acres125 Runways… 358 Piers/Wharves…$135B Plant Replacement Value
$12B Resources: Fortune 200 in Size
5/9/11
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Shore FactsShore Facts
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Shore Readiness Funding ProfileShore Readiness Funding Profile
Primary drivers of increased requirements: Energy, Joint Basing, Child Care, and Collateral Equipment
$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000
FY08 FY09 FY10 FY11 FY12Baseline (OMN and OMNR) Suplemental Housing Reimburse BRAC Other ARRA
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CNIC N8’s Process Improvement LandscapeCNIC N8’s Process Improvement Landscape
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MIC(Risk Management
Tool)
FIP(Auditability Tool)
ProcessQuik(Documentation
Tool)
LSS(Analysis Tool)
Driver: OUSD(C), CNIC N8, CNIC IG
Scope: Identify, document, and test Managers’ Internal Control points
Approach: Process owners develop MIC Plans to assess internal controls on an annual basis
Driver: FMO
Scope: Identify, document, and test financial internal control points for key end-to-end CNIC N8 financial management processes
Approach: Process discovery and validation, SBR Segment Control Testing, Business Segment Analysis, and Financial Impact Statement
Driver: CNIC N8
Scope: High level re-engineering of key end-to-end CNIC financial management processes (current focus is on HQ)
Approach: Conduct As-Is &To-Be focus groups to re-engineer processes, identify risks & control points, post products to ProcessQuik, develop & implement process change plans & internal controls test plans
Driver: ASN, CMO, CNIC N8
Scope: Targeted improvement for specific portions or steps within key end-to-end CNIC N8 financial management processes
Approach: Value Stream mapping & analysis, develop & execute Improvement plan using scalable DMAIC processes
Process ImprovementsContinuous Process
Improvement Board (CPIB)Implement
Process Improvements
Controls
Continuous Process Improvement
Results
Auditability/SBR Standardization Operational
Efficiency Statement of
Assurance Testing Results and
Command-level FIP progress reports
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ProcessQuikProcessQuik
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ProcessQuik is:– An online central repository that houses CNIC N8’s standardized process information– Accessible to CNIC employees enterprise-wide via CNIC’s Portal– A SharePoint application
ProcessQuik provides:– Interactive process documentation eliminating the need to update paper-based processes or
procedure binders– Standard forms and templates in one repository– A standardized method for training staff– A mechanism for continuous process improvement and encourages employee involvement– One location for internal controls information– Desk guides and Standard Operating Procedures that support transactional level activities
Each posted process includes:
– A process narrative that contains: a process definition, timeline of key events, SIPOC model, outline of roles and responsibilities of each process performer, and links to applicable systems / desk guides / rules / policies / regulations
– An interactive, MS Visio process map diagram that contains: process steps with control points indicated, “clickable” details behind each process step to include descriptions of the control activity, links to test plans, and links to applicable systems/desk guides/rules/policies/regulations
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CNIC N8’s Reengineering MethodologyCNIC N8’s Reengineering Methodology
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ScopeScope Document Current StateDocument Current State Design Future StateDesign Future State Validate Re-Engineered ProcessValidate Re-Engineered Process
Implement the New ProcessImplement the New Process
Determine the Scopeof the Process
Conduct Focus Groupsto Capture the As-Is
Process
Conduct Focus Groups to Re-engineer the
Process
Assess To-Be Process, Define Controls, and
Validate
ManageImplementation
Define the scope of the process (purpose of process, boundaries, process performers, stakeholders)
Collect relevant documentation (instructions, policies, existing process maps, etc.)
Conduct collaborative interviews/focus groups with Subject Matter Experts (SMEs) to:
– Define the process (definition, SIPOC model, process measures)
– Develop As-Is process map and dictionary (if needed)
– Identify process improvement opportunities
Evaluate and select process improvements
Conduct collaborative focus groups with SMEs to:
– Develop To-Be process maps, dictionaries, and narratives
– Document process change items
Obtain buy-in and approval from leadership on the re-engineered process
Define measurement criteria
Conduct collaborative risk assessment on To-Be Process from an internal controls perspective
Integrate MIC internal controls; add additional controls if needed
Develop process change implementation plan
Develop control test plans
Establish deployment approach and address process impacts
Post to ProcessQuik
Create Educational briefing for Process Owners to educate staff on process changes
Deliver Training
Complete Implementation Items
Rollout new policies/procedures
Test controls & document results
Conduct CPIB meetings to ensure processes are operating effectively, internal controls are being tested, and process documentation is current
Leadership, Process Owner, and Subject Matter Expert involvementLeadership, Process Owner, and Subject Matter Expert involvement
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CNIC N8’s Maturing Process CNIC N8’s Maturing Process Improvement Effort: 2008-2010Improvement Effort: 2008-2010
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2011:
– Expanded to the Regions, now doing enterprise-wide process improvement
– Employed the integrated approach to reengineer three additional processes
– Developed and implemented a holistic strategy to prepare CNIC to attain auditability of Statement of Budgetary Resources (SBR) by the end of CY12
• Matured the MIC Program
• Are incorporating FMO FIP controls and MIC controls into our processes
• Are developing transactional-level SOPs and Desk Guides
• Are developing an Internal Controls and Testing Page on the ProcessQuik site
• Began to explore financial control points with CNIC’s supplying partners (NAVFAC, etc.)
– Established the CPIB to provide governance of process improvement/standardization efforts and ensure integration of FIP/MIC program requirements
– Implemented an improved Civilian Labor budgeting process
• Used actual execution data as basis for projecting requirements to derive the budget (pricing, etc.) from actual accounting data at the Installation and Program level
– Began aligning ProcessQuik with workforce development initiatives
CNIC N8’s Maturing Process CNIC N8’s Maturing Process Improvement Effort: 2011Improvement Effort: 2011
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Leadership & Workforce InvolvementLeadership & Workforce Involvement
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Live Demonstration of ProcessQuikLive Demonstration of ProcessQuik
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ProcessQuik is accessed from the “Tools Menu” found on the CNIC Portal homepage under
“My Workspace”
ProcessQuik is found under the “Accounting and Financial” section of
the Tools page
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Reimbursable ManagementReimbursable Management
FY06 Roles and responsibilities were defined, but process was not standardized
FY06-FY08 FIP effort expanded scope to include Grantor side; however, a lot of effort spent in “discovery” with minimal effort to reengineer process
FY08-FY09 Audit Findings required CNIC to include mechanisms to validate reimbursables against Interservice Support Agreements (ISA’s) and Memorandums of Understanding (MOU’s)
FY11 CNIC N8 integrated efforts of BPR, LSS, FIP and MIC into one consolidated approach; recent guidance to attain auditability has been included
FY11 FMO issued a “system agnostic” version of reimbursable processes (pure process steps without specifics like STARS-FL or ERP); CNIC N8 ensured alignment
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Overview of ChangesOverview of Changes
Incoming Reimbursable Management Process (RWO-P)
Outgoing Reimbursable Management Process (RWO-G)
Old New
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Integration of FIP and MIC ControlsIntegration of FIP and MIC Controls
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Outgoing Reimbursable Process Map
Internal Controls Template
Internal Controls and Testing Page on ProcessQuik
Process Dictionary
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Key DiscoveriesKey Discoveries
Started out as more of a Lean Six Sigma approach to improve processes, but then learned that it is an excellent vehicle to document internal controls for FIP and MIC auditability
Robust vehicle to discover process improvements and to document standardized processes across the enterprise
Bringing all of the SMEs together enhances communications and improves each group member’s understanding of the entire process, not just their piece while building camaraderie amongst the participants
Integrates the FIP and MIC with improved financial management processes
Clarifies and documents the path toward auditability
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Way ForwardWay Forward
Achieve auditability of Statement of Budgetary Resources
Continue to reengineer and standardize processes enterprise-wide in coordination with Region N8s
Provide our employees with new workforce development tools and resources
Continue to promote the use of ProcessQuik throughout the Command